150 Percent Direct Subsidized Loan Limit

In July 2012, President Obama signed the Moving Ahead for Progress in the 21st Century
Act to cover the temporary extension of the 3.4 percent interest rate on Direct subsidized
loans through June 30, 2013. This new law, commonly called the “150 percent limit,” includes two key changes for certain Direct subsidized loan borrowers:

Limitation on Direct subsidized loan eligibility.

Potential loss of interest subsidy.

On May 16, 2013, the U.S. Department of Education issued an Interim Final Rule which
became effective on the date of publication. These regulations only apply to first-time borrowers on or after July 1, 2013, and
limit the time students may borrow Direct subsidized loans to no more than 150 percent
of the published length of the students educational program.

New borrowers who reach the 150 percent limit:

Do not qualify for Direct subsidized loans for future enrollment unless they enroll
in a longer program of study.

May lose interest subsidy for prior loans when they:

– Received Direct subsidized loans for 150 percent of the length of a program of study;
AND

– Have not completed their programs; AND

– Continue to be enrolled on at least a half-time basis in the same program, a different
program of the same length, or a program of shorter duration.

For students who lose interest subsidy, interest on affected loans may begin to accrue
in the same manner as interest on unsubsidized loans. Those prior loans do not become
unsubsidized loans; they remain Direct subsidized loans but no longer qualify for
interest subsidy.

Pell Lifetime Eligibility Limit

Pell Grants are awarded based on the maximum amount a student is eligible for. The
amount a student will actually get will depend on financial need, cost of attendance,
and status as a full-time or part-time student. Please see the 2015-2016 Pell Grant chart here.

The amount of Federal Pell Grant funds a student may receive over a student's lifetime
is limited by a new federal law to be the equivalent of six years of Pell Grant funding.
Because the maximum amount of Pell Grant funding a student receives each year is equal
to 100 percent, the new regulations state that a student may receive up to 12 semesters
or the six year equivalent of 600 percent.

Whether a student has used all of his or her Pell Grant eligibility or only a portion,
the student needs to be conscious about the lifetime limit of the Pell Grant when
changing majors and/or scheduling classes; the Pell Grant equivalent of 600 percent
will be for the student's entire award history.

To view Pell Grant Lifetime Eligibility Used (LEU), students can log on using their
Federal Student Aid PIN to the National Student Loan Data System (NSLDS) at www.nslds.ed.gov/nslds_SA/ to view LEU. (The LEU will be found on the Financial Aid review page.) The information
will include all Pell Grants received over a lifetime from any college, not just Delgado
Community College. If 600 percent of lifetime eligibility is not used, some Pell Grant
eligibility may be remaining, if eligible.